The versatile 21-year-old is poised to become Rafael Benitez’s first signing of the January window.
The 21-year-old has been one of Rafael Benitez’s top transfer targets this January but a move has been delayed by uncertainty over Newcastle’s ownership.
Kenedy, who is capable of playing as a full-back of winger down the left side, will be a useful addition to a group that is short on both numbers and quality.
Watford took the youngster on loan from Stamford Bridge last season, but he only made one substitute outing despite the Hornets using a divison-high 33 players.
Kenedy’s move to St James’ Park is expected to be sanctioned when Chelsea complete the signing of Roma full-back Emerson Palmeiri, according to Sky Sports.